3 Signs a Neighborhood May Be in Trouble

3 Signs a Neighborhood May Be in Trouble

January 11, 2019
How can buyers determine if a community is a good fit for them? Sure, they should walk the neighborhood and make visits at various times of the day. Realtor.com® recently interviewed housing experts to identify signs that a neighborhood could be on the brink of a decline. Here are some of those possible indicators:
Several houses are on the market.
Two or three homes for sale in close proximity is OK, but more than that could be an indication that something is wrong. “This points to illiquidity in the market and pricing pressure, which is a risk for buyers,” Alison Bernstein, founder of the Suburban Jungle, a real estate strategy firm, told realtor.com®. That said, a neighborhood could be seeing more For Sale signs because it’s rapidly gentrifying and longtime residents are finally looking to move on. But if there are several For Sale signs up on a block, home shoppers may want to do some digging to find out why.
School enrollment is falling.
In healthy communities, schools often see steady enrollment. “Shrinking class sizes are a red flag,” Bernstein told realtor.com®. If enrollment in local schools is trending lower, it might be wise to investigate. Is it because parents are fleeing to charter or private schools? Are residents staying put longer as their children grow up?
Nearby storefronts are empty or leaning industrial.
“Be mindful of any kind of commercial influence on the block, such as close gas stations or anything that could be undesirable health-wise,” says Ralph DiBugnara, vice president at Residential Home Funding. Also pay attention to the amount of vacant retail space. “Empty storefronts can tell you a lot,” Bernstein says. “They point to less disposable income of residents than clearly there once was.”
Source: https://magazine.realtor/daily-news/2019/01/11/3-signs-a-neighborhood-may-be-in-trouble
Source: 
“There Goes the Neighborhood: Watch Out for These 7 Red Flags When Buying a Home,” realtor.com® (Jan. 9, 2019)

Popular posts from this blog

Advice Young Adults Need to Avoid Buyer’s Remorse

Advice Young Adults Need to Avoid Buyer’s Remorse March 4, 2019 Most young adults have financial regrets about their home purchase, a new Bankrate survey shows, but much of their grief could have been avoided with proper planning. That’s where you come in: Younger buyers have a need for more professional guidance about the costs of homeownership. Sixty-three percent of millennial homeowners—more than any other generation—expressed buyer’s remorse, most often pertaining to closing costs, home maintenance, and other hidden expenses, according to the survey of more than 2,000 consumers. “When you buy a house, you can’t call the maintenance company or a landlord to fix major issues; it’s all on you,” says Luis Rosa, a financial planner in Henderson, Nev. Extra expenses, such as needing a new air conditioner, furnace, or water heater, often catch first-time buyers by surprise, Rosa adds. “I always advise home buyers to create savings buckets and open a savings account
Read more

Housing Slowdown Doesn’t Scare First-Time Buyers

Housing Slowdown Doesn’t Scare First-Time Buyers March 4, 2019 Despite recent declines in home sales, sluggish growth in single-family home construction, and mounting affordability concerns, first-time buyers are outperforming other segments of the market, according to a new report released by Genworth Mortgage Insurance. “The first-time home buyer market has been more resilient during the [housing] slowdown compared to repeat buyers,” writes Tian Liu, chief economist at Genworth Mortgage Insurance. About 482,000 first-time buyers purchased homes in the fourth quarter of 2018. Though that’s 3 percent lower than a year ago, it bests the 7 percent year-over-year decline in repeat buyer activity, according to the report. “This is a reminder that first-time home buyers differ from other buyer groups in terms of why they buy,” Liu notes. “Their purchase decisions are more likely driven by the fact that many are starting families and reaching peak homebuying ages. Even
Read more

What Buyers Should Ask After a Home Inspection

What Buyers Should Ask After a Home Inspection October 9, 2018 You are here Home News and Commentary Daily News What Buyers Should Ask After a Home Inspection Share Facebook Twitter LinkedIn Print October 9, 2018 After an inspector has finished a home report, buyers may feel overwhelmed by any flaws that might have been found. That’s why it’s important they take the opportunity to learn more so that they can move forward confidently in the transaction. A recent article at realtor.com® recommends home buyers ask their inspector clarifying questions like: “I don’t understand this; what does it mean?” or “Is this a major or minor problem?” and “Do I need to call in another expert for a follow-up?” Home inspectors are bound to uncover something in a home; no home is perfect. But the majority of the problems they uncover will likely be minor. Have the home inspector clarify which problems fall within the “minor” or “major” categories. Keep in mind: “The inspector can't tel
Read more